Fraud

Publication date 27-02-2025, 14:13 | Last update 02-04-2025, 13:31

Fraud is a form of crime that comes at a great cost to society. It includes activities such as money laundering and the deliberate misreporting or evasion of income tax and VAT returns. The FIOD investigates financial fraud and tax fraud.

What is tax fraud?

Evading tax is a form of tax fraud. In this case, someone does not pay income tax or VAT when they should. In addition, wrongfully claiming subsidies, income-dependent schemes or benefits are also forms of (tax) fraud as well.  The Netherlands misses out on many millions of euros a year due to tax fraud. Fraud can also undermine a sense of justice and trust in the government.

What is financial fraud?

Examples of financial fraud are:

• money laundering: such as investing criminal money in a legal company;
• insider trading: in order to influence share prices;
• insolvency fraud: allowing a company to go into liquidation on purpose to avoid having to pay debts.

What does the FIOD do to combat fraud?

The FIOD receives fraud reports every day. For example, from the Netherlands Tax Authority, Benefits, Customs and other authorities, industry organisations, companies and private individuals. The FIOD investigates these reports, and if required, starts a criminal investigation in collaboration with the Public Prosecution Service (OM). If it is necessary to wiretap a suspect or search their home, then this can only happen with the permission of an examining judge. The public prosecutors of the OM decide which cases will be brought before the court.